Transportation

EV Maker Fisker Stops Production, Warns It May Need to Seek Bankruptcy

  • Existing investor commits to helping raise up to $150 million
  • Company is still negotiating potential deal with big automaker

The Fisker Ocean electric sports utility vehicle in Los Angeles.

Photographer: Kyle Grillot/Bloomberg
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Fisker Inc. is pausing production for the next six weeks as the electric-vehicle maker looks to rein in inventory and avoid possibly having to file for bankruptcy.

The company didn’t make a required interest payment of about $8.4 million last week on its unsecured convertible notes due in 2026, according to a regulatory filing Monday. Fisker warned it may not be able to meet obligations to service its debt and “could need to seek protection under applicable bankruptcy laws.”